Merck lifted its adjusted profit guidance to between $2.77 and $2.82 per share for the full year, up from a previous range of $2.66 to $2.76 per share, after beating third-quarter expectations. The company's immunotherapy drug Keytruda, including a newer injectable form called Qlex, delivered stronger-than-expected sales during the period. Keytruda generated $8.60 billion in quarterly sales, exceeding analyst expectations of $7.73 billion according to StreetAccount. The guidance adjustment includes a one-time charge of $400 million, or 12 cents per share, tied to a licensing agreement with Chinese cancer drugmaker SciBrunch.
Qlex, the newer under-the-skin injection version of Keytruda that launched in 2025, generated $830 million in quarterly sales, its strongest quarter to date. Analysts had expected $649 million in Qlex sales, according to StreetAccount. The performance suggests the drug could eventually become a multibillion-dollar product annually. Merck is using Qlex as a cornerstone of its growth strategy, seeking to transition patients from the original intravenous version to the more convenient injection form. This approach aims to defend market share and sustain Keytruda's blockbuster sales as key patents begin expiring in 2028.
The company narrowed the low end of its 2026 revenue guidance, now expecting sales between $66.8 billion and $67.3 billion, compared with a previous outlook of $66.3 billion to $67.3 billion. For the third quarter, Merck posted net income of $5.07 billion, or $2.04 per share, down from $5.79 billion, or $2.32 per share, in the year-earlier period. Excluding acquisition and restructuring costs, the company posted earnings of $2.49 per share for the third quarter. Quarterly revenue reached $18.09 billion, up 5% from the same period a year earlier.
Beyond Keytruda, Merck's newer products demonstrated strong performance. Winrevair, which treats a rare, deadly lung condition, generated $694 million in quarterly sales, up 93% from the year-earlier period, beating analyst expectations of $645 million. The Gardasil vaccine, which prevents cancers from human papillomavirus infection, drew about $2 billion in sales due to higher demand in the United States, exceeding analyst expectations of $1.76 billion. The vaccine's strong performance comes after Merck dealt with elevated inventory and weak demand in China during the previous year. The company's animal health business posted $1.68 billion in quarterly sales, slightly below analyst estimates.
Merck has been pursuing acquisitions to offset coming generic competition for Keytruda as its original patents approach expiration. The company's ability to sustain growth in its flagship drug while developing newer forms and launching successful new products means higher earnings potential for the company, which is attractive to investors and may support share values.